marketing

Question 1

what is the purpose of marketing?

Answer 1

is to make new customers aware of your product and to remind existing customers about your product

Question 2

define marketing

Answer 2

a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers

Question 3

what is the marketing approach

Answer 3

placing customers at the centre of product design, development and testing to ensure their needs are met

Question 4

define target market

Answer 4

is a group of potential or existing customers with similar features/characteristics

Question 5

what are the 3 approaches to selecting a target market?

Answer 5

mass marketing, market segmentation, niche marketing

Question 6

what is mass marketing

Answer 6

the business targets its product at the whole market/population

Question 7

what is market segmentation

Answer 7

the business targets the whole market, but subdivides this into smaller market e.g. by demographics

Question 8

what is niche marketing

Answer 8

the business targets a small market by specific demographic qualities

Question 9

define market segmentation

Answer 9

when the total market is subdivided into groups of people who share one or more common characteristic

Question 10

what are some examples of products mass marketed

Answer 10

utilities (gas, electricity, water) and basic food items (milk, bread - although the increase in variety means these too are becoming more segmented

Question 11

how are products priced and promoted in market segmentation?

Answer 11

demographic (population characteristics)
geographic (where people live)
psychographic (personality characteristics)
behavioural (loyalty to a product)

Question 12

define consumer buying behaviour

Answer 12

when the total market is subdivided into groups of people who share one or more common characteristic

Question 13

define primary target market

Answer 13

the market segment at which most of the marketing resources are directed

Question 14

define secondary target market

Answer 14

usually a smaller and less important market segment

Question 15

define niche marketing

Answer 15

businesses choose to target a narrow segment of the market only

Question 16

why would a business do niche marketing

Answer 16

because it allows them to specialise in products they know very well and cause customers will seek out niche businesses where they need advice and knowledge before choosing a product

Question 17

what is the marketing mix

Answer 17

consists of price, place, product, promotion that make up the overall marketing strategy

Question 18

in products, what are marketing management are interested in?

Answer 18

product, packaging, product branding, product positioning

Question 19

what is the purpose of product packaging

Answer 19

not only preserve, inform and protect the product, it also creates a positive impression of the product to create an image of luxury and exclusivity

Question 20

what is a brand

Answer 20

a brand is a name, term, symbol or design that identifies a product and differentiates it from its competitors

Question 21

how do businesses protect their branding

Answer 21

brands are generally protected by copyright or registered trademark to prevent other businesses from using or copying them

Question 22

define product positioning

Answer 22

refers to the development of a particular ‘image’ for a product against its competitors; normally linked to intangible benefits

Question 23

what is the total product concept

Answer 23

customers are sold the tangible and intangible benefits of a product

Question 24

what are the three pricing methods

Answer 24

cost-based, market-based, competition-based

Question 25

what is cost-based pricing

Answer 25

price is set at cost price plus a profit percentage

Question 26

what is market-based pricing

Answer 26

price depends on the demand for the product

Question 27

what is competition-based pricing

Answer 27

price is set according to what competitors are sell for (above, below or equal to)

Question 28

define promotion

Answer 28

refers to the method(s) used to inform, persuade and remind customers about a product

Question 29

what is the aim of promotion

Answer 29

attract new customers, increase product (brand loyalty), encourage existing customers to buy more

Question 30

what is the promotion mix

Answer 30

personal selling, advertising, sale promotion, publicity, direct marketing

Question 31

how can promotion have the aimed effect?

Answer 31

promotion must be relevant to your product and target market in order to have the desired effect

Question 32

define place

Answer 32

to the method or channel of distribution

Question 33

what is a distribution channel?

Answer 33

the method of getting the product from producer to customer

Question 34

what are the 3 main types of traditional distribution channels?

Answer 34

producer to customer (business sells directly to the customer)
producer to retailer to customer (business sells to store which sells to customer)
producer to wholesaler to retailer to customer (business sells to intermediary who sells to store who sells to customer)

Question 35

what is the 3 extended marketing mixes

Answer 35

people (the staff who have contact with customers)
processes (the systems and processes that deliver the product to the customer)
physical evidence (the physical environment experienced by the customer)